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Economic Analysis of Theft Reporting: the Case of Mexico City

Author

Listed:
  • Víctor Gerardo Carreón Rodríguez

    () (Division of Economics, CIDE)

  • Jorge L. García-Menéndez

Abstract

Theft is the major component of crime rates in Mexico City and its reporting remains low and stable even when the budget assigned to federal public security reached an increase of 202.23% in 2006-2010. We develop a utility maximization model that attempts to explain the incentives that individuals face when theft reporting and we empirically verify it. We empirically verify a direct relationship between theft reporting and the recovered proportion of what is robbed. Also, we find an inverse relationship between theft reporting and (i) its price, and (ii) theft itself.

Suggested Citation

  • Víctor Gerardo Carreón Rodríguez & Jorge L. García-Menéndez, 2013. "Economic Analysis of Theft Reporting: the Case of Mexico City," Working papers DTE 568, CIDE, División de Economía.
  • Handle: RePEc:emc:wpaper:dte568
    as

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    File URL: http://cide.edu/repec/economia/pdf/DTE568.pdf
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    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters,in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
    2. Steven D. Levitt, 1996. "The Effect of Prison Population Size on Crime Rates: Evidence from Prison Overcrowding Litigation," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 319-351.
    3. Hashem Dezhbakhsh & Paul H. Rubin & Joanna M. Shepherd, 2003. "Does Capital Punishment Have a Deterrent Effect? New Evidence from Postmoratorium Panel Data," American Law and Economics Review, Oxford University Press, vol. 5(2), pages 344-376, August.
    4. Donohue, John J & Wolfers, Justin, 2006. "Uses and Abuses of Empirical Evidence in the Death Penalty Debate," CEPR Discussion Papers 5493, C.E.P.R. Discussion Papers.
    5. Joanna M. Shepherd, 2004. "Murders of Passion, Execution Delays, and the Deterrence of Capital Punishment," The Journal of Legal Studies, University of Chicago Press, vol. 33(2), pages 283-321, June.
    6. Cameron, Samuel, 1994. "A review of the econometric evidence on the effects of capital punishment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 23(1-2), pages 197-214.
    7. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    economic models of crime; theft; theft reporting;

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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